Pflugerville ISD officials approved Aug. 17 a $279.57 million operating budget that features increased pay for staff and a higher estimate for recapture payments due to the state than previous years.

The overview

For fiscal year 2023-24, the $279.57 million budget is based on a total tax rate of $1.1092 per $100 valuation to fund district management and operations as well as its debt service. The budget includes compensation increases of 3% for staff and teachers, funded by additional tax revenue the district would collect if a voter-authorized tax rate election passes, which the board also called.

Proposals for the $279.57 million budget show the size of its shortfall or surplus is dependent on the outcome of the VATRE, to be held Nov. 7.

Should voters pass the measure, budget projections show the district would have a surplus of $1.32 million. If it fails, the district is looking at a potential $2.94 million shortfall.

What residents should know

The $1.1092 per $100 valuation on which the budget is based is inclusive of the $0.07 per $100 valuation voters would be asked to approve in that election. In total, these compensation increases represent a $6.4 million cost to the district.

Diving in deeper

District documents also show the budget accounts for $9.8 million in recapture payments, which would increase with a rise in property values and the extra revenue generated by a successful VATRE. These documents state the district has observed a 4.5% increase in local property values. Any excess local revenue derived from property taxes, as determined by a formula created by the state, is required to be paid back to the state and reallocated to other districts with less property value. This means that although property values are increasing, the district is not able to retain a majority of additional revenue.